Banking sector fears were responsible for a nice little drop in mortgage rates over the past 2 weeks. As those fears subside (to some extent, anyway), the market reaction has reversed to some extent. This is most noticeable in the stock market in the US.
Stocks don't dictate interest rates. That job falls to bonds and bonds have been slower to retrace their recent steps. That means rates are higher, but not yet back up to the levels seen before the banking drama began. That's a good thing, but it also presents a vulnerability. Specifically, if banking fears continue dying down, rates have more room to rise. READ MORE...